Auto and Supply Chain Updates: CATL Plans $7B Green Tech Bond; XPeng Bets on Physical AI for L4 Autonomy

On March 5, Denza launched its new Z9 GT model, offering five configurations priced between RMB 269,800 and RMB 369,800. As of May 28, the vehicle had delivered over 10,000 units in the two and a half months since its market debut. Xiaopeng Motors Chairman He Xiaopeng stated that the company has discontinued its previous autonomous driving technology path, into which it had invested tens of billions of yuan, and shifted toward a new direction based on a "Physical AI" architecture. He expects Level 4 autonomous driving to be achieved within 18 to 24 months. He emphasized that autonomous driving is one of the key applications of Physical AI and that over the next decade, the company will build three growth curves centered on automobiles, robotics, and global business. Toyota reported global sales of 849,300 vehicles in April, down 3.1% year-over-year, marking the third consecutive monthly decline. Global production rose 2.0% year-over-year to 832,000 units—the highest for April on record. Meanwhile, exports to the Middle East totaled 2,418 units, a 91.7% year-over-year drop, with the decline widening compared to March. Chery Automobile has partnered with Japan’s AUTOBACS SEVEN to launch a new lightweight EV brand in Japan called “EMTA” and established EMT Co., Ltd. to manage operations, highlighting that the brand was specifically developed for the Japanese market. NIO CEO William Li revealed that rising prices of raw materials such as nickel, cobalt, and lithium carbonate have increased per-vehicle costs by over RMB 10,000 this year. Prices of key components like memory chips have also remained elevated, and automakers lack pricing power, forcing them to absorb these additional costs internally. Chery has wholly established Anhui Xidian Energy Technology Co., Ltd., with a registered capital of RMB 500 million. Its business scope includes battery manufacturing and sales, as well as energy storage technology services. Semiconductor manufacturer ROHM has introduced the “AG16xFNxx series,” an 80V-rated MOSFET designed for 48V automotive power systems. Featuring a compact package, it helps enhance integration in automotive electronics. Solid-state battery company ProLogium Technology announced plans to go public in New York through a merger with SPAC company TDAC, with an estimated transaction valuation of USD 3.8 billion. Contemporary Amperex Technology Co. Limited (CATL) disclosed its intention to issue the third tranche of its 2026 Green Technology Innovation Bonds, amounting to RMB 5 billion with a “3+2” year term. Proceeds will fund operations of lithium-ion battery production projects and supply chain payments, representing the third issuance under its approved RMB 40 billion quota. RoboSense reported first-quarter 2026 revenue of approximately RMB 460 million, up 40% year-over-year. Total LiDAR sales reached 330,300 units, surging 204.1% year-over-year. Sales in the robotics segment hit 185,500 units, soaring 1,458.8% year-over-year and accounting for 56% of total sales—marking the first time robotics surpassed ADAS automotive applications as the company’s largest revenue source. UK passenger car and commercial vehicle production fell 1.2% year-over-year in April, impacted by declining commercial vehicle output and weak exports to China. According to data from the China Passenger Car Association (CPCA), retail sales of passenger cars nationwide from May 1 to 24 totaled 989,000 units, down 24% year-over-year; new energy vehicle (NEV) retail sales reached 619,000 units, down 11% year-over-year. NEV retail penetration during this period stood at 62.5%, while wholesale penetration reached 63.6%. Cumulative retail sales for the first five months of the year totaled 6,594,000 units, down 19% year-over-year; NEV cumulative retail sales amounted to 3,377,000 units, down 16% year-over-year. The drafting of the “Roadmap for Promoting the Application of Recycled Materials in Vehicles (2026–2030)” has recently commenced. Focused on applying recycled plastics, recycled aluminum, and other materials in vehicle frames, bodies, wheels, glass, and interior/exterior components, the roadmap aims to advance green, low-carbon, and circular development in the automotive industry. Key areas of focus include material standards, quality certification, application validation, and supply chain collaboration mechanisms. Volkswagen (Anhui) Digital Sales & Services Co., Ltd. announced that current Chief Operating Officer Liu Zhanshu will assume the role of Chief Executive Officer effective July 1, 2026. This appointment aligns with the company’s long-term talent pipeline strategy.